Columbia Care Raises $25 Million Way Below the Prior Close
- New Cannabis Ventures Sep 18, 2023
Columbia Care, a US-based cannabis company, has entered into subscription agreements with institutional investors for the purchase and sale of 22,244,210 units of the company at a price of C$1.52 per unit.
The initial tranche of the private placement will generate gross proceeds of approximately C$33.8 million or approximately US$25 million.
The investors will have the option to purchase an additional US$25 million in units at the same price, subject to certain conditions.
Columbia Care intends to use the proceeds to reduce its outstanding debt and for general corporate purposes.
NEW YORK–(BUSINESS WIRE)–Columbia Care Inc. (NEO: CCHW) (OTCQX: CCHWF) (FSE: 3LP) (“Columbia Care” or the “Company”), one of the largest and most experienced cultivators, manufacturers and retailers of cannabis products in the U.S., today announced that it has entered into subscription agreements with institutional investors (the “Investors”), for the purchase and sale of 22,244,210 units of the Company (the “Units”) at a price of C$1.52 per Unit (the “Issue Price”) pursuant to a private placement (the “Offering”), for aggregate gross proceeds of approximately C$33.8 million or approximately US$25 million (the “Initial Tranche”).
The Investors will have the option to purchase US$25 million in additional Units at a price equal to the Issue Price, upon written notice to the Company at any time up to 45 days following the date hereof (the “Investor Option”). In connection with the transaction, the…